Are prices falling-and example from watersound

[Kurt]

I don't get overly excited about real estate but I like to be in nice places. St. Joe will do a lot of great developments in years to come, but I can't imagine any that will be in a better location or have greater beauty than WaterSound.

I think time will prove that it will be the crown jewel, the ultimate in Florida, and among the most well-known and loved destinations in the nation, if not the world.

I do not own property there, but I would if I could. But then again, I also like deserts and swamps.

 

[wetwilly]

I don't own property at WC or WS, am not a Real Estate expert, but I know based on what I have seen that St Joe does plan and build a quality product. As far as the lowering of the prices presented in this thread, it appears to be a normal supply and demand adjustment going on here. If these are St Joe original sales (not resales) that are being reduced, I suggest that it is just too much inventory or determined by the folks at St Joe's to be days on the market too long. My guess it that they may want to move them at a lower price. St Joe having developed large communities has inventory and guidelines on when to lower prices to move or sell that inventory. It seems to be (like some real estate) an adjusting model of supply/demand and lowering the price to try and find what the market will bare (sp?).

Additionally, the original prices may have been set too high and now they are just adjusting them to incent sales.

Although I do think this happens in other areas of SoWal, IMO this is a St Joe effort and equation to "move" the inventory in a big development/community.

I do not think this action should be the primary data point to assuming that this means SoWal real estate is loosing any value. This may be one of the first times that St Joe has done this and that may be interesting/important as far as a trend is concerned or not?

This is my observation, opinion, assumption, and rationalization based on the date in this thread. I am realistically bullish on the continued value of this beautiful area we all love. As many people say, there is a limited supply of this beautiful area and He aint' making anymore of it..........

Anyone know anyone at St Joe to verify this or get the scoop (if they will tell you)?

 

[Travel2Much]

I have been keeping very close tabs on WS because, I am embarassed to admit, I would like to buy either there or one place else someday since I think it is groovy and I am a Graham Gund groupie, depending on a few variables, one being of course being able afford the darn place.

It seems the St. Joe offerings go well, and at a good price--900s & above. There was one closing in March I think. Think this over, if you want to buy a lot there, your best bet is to buy directly from St. Joe, get the three year build-out, and all of the intangibles from buying from Joe.

Some of what goes on seems to be the usual Walton County nonsense. Say, I bought a lot last year for $850,000. I might immediately go around & list it for $1.7 million, figuring that 100% overnight profit is my fair due. Then, I might drop it to $1.1 million seeing if there are any takers. The, my neighbor might list their lot for $1.4 and I might raise mine to $1.45. Yada Yada Yada...

I look around in WS a lot since I dig it and what perplexes me is the lack of home building going on there. Quiet quiet quiet. Must be a reason for that I am not aware of. One variable I am waiting on is the build-out.

Sales of lots in WS West started last week. Prices in 600-700 range. Nothing really special though on my subjective view.

 

[pat3797]

My previous post regarding the numerous lots being reduced at Watersound was by no means a knock on the area. I too believe WS is incredible and will be looked back on as a great buy if one would purchase land there at a "reasonable" price.

However, many of the redcutions may be related to lots which have upcoming build requirements. Thus, if one is interested, it may be prudent to be ready to build and make offers on lots the previous owners have no intention on building on.

I say this as a person who intends to buy along 30A for a long term 2nd residences that my kids can come and visit me in in 10-15 years!
:laughing1

 

[Travel2Much]

...However, many of the redcutions may be related to lots which have upcoming build requirements. Thus, if one is interested, it may be prudent to be ready to build and make offers on lots the previous owners have no intention on building on....

My view exactly, too, and I am keeping close eye on that. The sheer volume of properties on the market, coupled with the lack of building, leads me to suspect that many of the initial buyers had no genuine intention of building and/or owning there, and are in for a nasty surprise left with a lot on which you will be required to build a really expensive house/condo in a flat market with higher interest rates. That three year build-out will be interesting, I see it as kicking in from Dec. 2005 to early 2007, judging from the sales records, and if there are good deals there I figure that might be when, if you are an "end-user" (to use the post-modern flipper term).

Or, it could take off because it is truly a great property, although incredibly expensive. Now, to use the beach club apparently you are going to have to be a "member". One more added cost, concocted by the busy elves in St. Joe's workshop.

 

[CSP]

I've been following the board for a while. Interested in RE at 30-A, didn't own anything yet.

The positive, or upside for 30-A is that it's still not yet well known to national or global investors. Downside is these are MADE town, like a golf-course development. Similar design would go to another place from ground zero.

If these resort towns were ocean-front, with restricted future development around. That would make them unique, and sky would be the limit.

 

[wetwilly]

I have been following Watersound as well as Watercolor. On May 2, 2005 I printed out all available lots at Watersound. I went back this week and pulled the MLS listings on the ones still active. Approximately 30% of these lots were reduced. Some as little as $50k from 1275 to 1225 but some (if not many) dropped by a third. ie - $1.8 to $1.2 and also saw a couple go from $1.2- $1.3 down under $950k

Just my two cents worth!

Curious...are the lots in the post above, resales or sales directly by Joe? If resales, I buy into the build out issue if direct then 3 yr build out timeline has not started yet.

Anyone know if these are resales or new sales direct?

 

[Kurt]

I haven't put eyeballs on paper but the word I've heard about WS is that at the end of a buildout period with no building happening, the developer can buy back the lots at original sales price.

Find out that price and buildout deadline, 60 days prior, make your offer.

 

[Travel2Much]

Curious...are the lots in the post above, resales or sales directly by Joe? If resales, I buy into the build out issue if direct then 3 yr build out timeline has not started yet.

Anyone know if these are resales or new sales direct?

My understanding (which can be very wrong, in ample past experience) is that most, if not nearly all, of the listings at WS are third party. Even if St. Joe lists it through their land sales arm, it is not necessarily a St. Joe-owned property. You can check that by comparing county records to the lot, although with WS it is a pain b/c records do it by lot and listings are often by address. Condos under contract (i.e., never sold) are not of course in the land records. Reviewing Joe's annual report, it appears that some of the condos at Compass Point are third party, and Joe is holding some back to sell themselves later this year, I think.

The dynamic at WC is slightly different.

 

[georgiaboy]

I currently have a lot in WS and the new properties that are being released are at WaterSound West which is on the the other side of the state park. I would call WaterSound West ..."WatersSound Lite." These priced in the upper 600's to the 700's. I think the last release in WS they had in the 900's. There are a couple of lots on resale right now that are below 900 but these may have only 1 year left before you start building.

To reply to Travel2Much quoted below:


"Or, it could take off because it is truly a great property, although incredibly expensive. Now, to use the beach club apparently you are going to have to be a "member". One more added cost, concocted by the busy elves in St. Joe's workshop"


As far as the Beach Club, this will be an addition to the existing pool areas that they have. I haven't heard anything final on this yet other than you would have to pay into it.

I have used both pools with my family and can say that both are incredible. I was down the 4th of July (before Dennis) and we loved the new pool in WaterSound Beaches. It is just on the other side of the dunes and is just a perfect spot.